Throughout the years, you have undoubtedly noticed the signs – handwritten in all caps, nailed to the telephone pole as you’re getting on the highway – “WE BUY UGLY HOUSES.” Recently, you’ve also started seeing another interesting trend: technology companies called iBuyers that make cash offers on homes and close within a matter of days.
What exactly are these business models, and what is your best play as a homeowner that is trying to sell your house as fast as possible?
BACKGROUND ON CASH FOR HOUSES
According to the National Association of Realtors, all-cash purchases are presently on the rise and represent 33% of market’s home purchases. In addition, Florida was the state that experienced half of all home acquisitions in the United States bought with cash. This is a unique phenomenon, particularly because the real estate market has experienced a decrease in distressed homes and real estate investor activity.
WHO BUYS HOMES FOR CASH AND WHY?
By definition and collectively, cash home buyers are individuals or entities that buy your house without lender financing. Selling your house to an all-cash buyer grants you the ability to skip the home preparation, cleaning, and hassle of staging and schedule a much more flexible closing timeline of your choice.
OUR BUSINESS MODEL DIFFERS FROM THAT OF MOM-AND-POP INVESTORS’
Our operation is mostly volume-based and we must allocate our funds into the real estate assets we have chosen accordingly every quarter without fail. Doing so allows our company to be able to spread out a small amount of equity over a large amount of properties in order to maximize the profitability to our stakeholders, which in turn increases the price we are able to pay for homes. This strategy allows our company to maintain a strong competitive advantage over the typical mom-and-pop businesses that do not have this capacity and therefore, will lack the flexibility to provide the seller of a home what they need with the highest cash offer.
5 THINGS YOU SHOULD KNOW ABOUT SELLING YOUR HOUSE FOR CASH
1. Fast Cash Offer will purchase your house AS-IS.
If your home needs significant repairs before you can put it on the market, a cash offer might look pretty good because we will buy your property “AS-IS.”
Our only criteria is that our sellers who are selling their houses not deal with the extra work of having to fix their property up or make a project out of cleaning out all of the belongings that they do not want to take with them. We will make sure the transition is as smooth as possible, and we encourage our sellers to leave behind anything they don’t need so that we can donate or throw them out for them.
Our company is interested in both, repairing homes and homes that are in better condition with minor wear-and-tear issues at a more competitive price.
Our team will visit your house after we have signed a purchase agreement in order to calculate what the repairs will cost us. Regardless, you will avoid the hassles of having to complete the repairs yourself, which can be both time-consuming and costly.
2. You can dodge contingency clauses.
Contingencies run unchecked in house contracts. Contingencies are “back out” clauses that do a lot to protect buyers but are excessive for sellers. The fine print might say something like:
– Offer is only valid if the buyer’s home sells within three months.
– Offer is only good if the inspection does not find a cracked foundation.
Even if the bank has approved it, the offer is only valid if the mortgage lender comes through. If you’re selling your home for cash to an investor like us, this may be an extra obstacle you can avoid.
3. Financing is cheerfully different.
The reason home sales take forever is that banks often get involved in the logistics. If you have to borrow money from a mortgage lender, you’re on their timeline and they don’t really care about your timeline. All-cash purchases close quickly because they don’t have to deal with lenders at all, and the sellers are almost completely in control of the closing timeline.
Financing is also where home sales tend to fall apart, so selling your home to someone who is buying it for cash means you can avoid this road block.
4. Selling a house for cash takes substantially less time and legwork.
Because you have a cash buyer interested from the beginning, you don’t have to go through all the processes that go into listing your home for sale. There is absolutely no need to worry about hiring a professional photographer or figuring out your marketing description.
As a direct buyer, Fast Cash Offer takes care of the inspection and repair responsibilities for you and you completely skip the lending steps. You call us, we ask you some questions and we make you an offer. You take it or leave it, and you close the transaction within a week or two and receive your funds.
This can be a remarkably attractive option in the event that you have to drop everything and sell the house to relocate for a job or other sudden life change.
5. Scams happen in the ‘Sell Your House for Cash’ space.
Life events or circumstances such as a divorce, a foreclosure, a bankruptcy or an employment transfer all make the option of selling your house to an investor for a quick, seamless transaction more attractive. However, that doesn’t mean you shouldn’t do your due diligence.
Though there are many legitimate and legal cash-for-houses companies like ours, it is an industry fraught with scams.
Beware. Keep a close eye on your credit history to be certain no one has taken out a second mortgage on your home. Be skeptical about any company that tries to charge an application fee upfront. Shady businesses can take your equity and walk away, leaving you in a more dire position than you were when you began searching for a cash option.
On the bright side, Fast Cash Offer is an “A” rated with Better Business Bureau with thousands of happy sellers expressing their appreciation for the efficiency and professionalism of its staff.
To summarize selling your house for cash:
What is this business model?
A real and lucrative opportunity to sell your house for cash, bypass the stresses of showings, and close within weeks or even days.
What is the best choice for a homeowner?
If you need to sell your house quickly, Fast Cash Offer will meet your particular needs, depending on factors such as your home’s price range and condition, through one of our experienced Acquisition Managers.
What’s the catch?
There is no catch. It is always better to know what options are available in order to maximize your chances at succeeding in what you are looking to accomplish for you and your family.
Curios about what your house is worth? Get an offer within 30 minutes by calling 844-799-7772 today.